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HomeMy WebLinkAboutSan Diego County Water Authority; 1992-01-21;1) a ENCINA BASIN WATER RECLAMATION PROJECT PHASE I JOINT PARTICIPATION AGREEMENT FOR DEVELOPMENT AND UTILIZATION OF RECLAIMED WATER BETWEEN THE METROPOLITAN WATER DISTRICT OF SOUTHERN CALIFORNIA, SAN DIEGO COUNTY WATER AUTHORITY, AND CARLSBAD MUNICIPAL WATER DISTRICT 1) TABLE OF CONTENTS Paa Recitals.. ........................ section 1. Definitions ...................... 2. Project Description .................. 3. Warranties. ...................... 4. Construction Responsibilities ............. 5. Ownership of Facilities ................ 6. Operating Responsibilities. .............. 7. MWD Purchase of Actual Yield. ............ .: 8. Resale of Actual Yield to SDCWA and CMWD. ...... .: 9. Project Water Rates ................... 10. Term and Amendments .................. 11. Hold Harmless and Liability .............. 12. Notice.. ....................... 13. Successors and Assigns. ................ 14. Severability. ..................... 15. Integration. ...................... 16. Governing Law. ..................... Exhibits Exhibit A (Project Description) Exhibit B (Map) c 0 ENCINA BASIN WATER RECLAMATION PROJECT PHASE I JOINT PARTICIPATION AGREEMENT FOR DEVELOPMENT AND UTILIZATION OF RECLAIMED WATER BETWEEN THE METROPOLITAN WATER DISTRICT OF SOUTHERN CALIFORNIA, SAN DIEGO COUNTY WATER AUTHORITY, AND CARLSBAD MUNICIPAL WATER DISTRICT THIS AGREEMENT is made and entered into as of January 21, 1992, by and among THE METROPOLITAN WATER DISTRIC OF SOUTHERN CALIFORNIA (hereinafter WWDtt) , SAN DIEGO COUNTY WATER AUTHORITY (hereinafter ItSDCWAtt) , and CARLSBAD MUNICIPAI WATER DISTRICT (hereinafter ttCMWDtt) ; Explanatory Recitals WHEREAS, MWD was incorporated under the Metropolita: Water District Act (ltActtt) for the purpose of developing, storing, and distributing water for domestic and municipal purposes ; WHEREAS, the Act empowers MWD to acquire water and water rights within or without the state; develop, store and transport water; provide, sell and deliver water at wholesal, for municipal and domestic uses and purposes; set the rates for water; and acquire, construct, operate and maintain any and all works, facilities, improvements and property necessa or convenient to the exercise of the powers granted by the Act; WHEREAS, SDCWA, as a member public agency of MWD under the Act, is a wholesale purchaser within its service area of water developed, stored, and distributed by MWD; a e WHEREAS, CMWD is a member public agency of SDCWA and provides domestic and subpotable water services within SDCWA's service area; WHEREAS, MWD's water supply and demand projections for its service area, including that encompassed by SDCWA, show that additional sources of supplemental water must be developed to meet future needs; WHEREAS, MWD has determined to take all reasonable and necessary steps to maintain MWD's water supplies at level which will meet the needs of the people in the MWD service area, which steps include detailed analyses of the conjuncti7 use of groundwater basins, water reclamation, and a variety c water conservation techniques; WHEREAS, MWD and SDCWA have determined that it is mutually beneficial for cost-effective local water projects originating in the service area of SDCWA to be developed as ( supplement to MMD's imported water supplies in order to meet future water needs; WHEREAS, a significant amount of treated wastewater generated within the SDCWA service area is currently lost to the ocean, which water could be used for special subpotable purposes ; WHEREAS, CMWD has obtained approval to distribute reclaimed wastewater for landscape irrigation from the California Regional Water Quality Control Board, San Diego Region, pursuant to Order No. 91-60 and any orders supplementary or amendatory thereof; -2- 0 0 WHEREAS, significant additional quantities of Reclaimed Water could be distributed and sold by CMWD by means of additional capital facilities to distribute and use additional wastewater, thereby avoiding disposal thereof as E waste product, and avoiding the use of an equivalent volume c imported water for freeway, greenbelt, golf course and nurse1 irrigation purposes; WHEREAS, CMWD is currently planning and desires to construct additional capital facilities collectively known as Encina Basin Water Reclamation Project Phase I (hereinaftc ''Project1') , to distribute, for municipal and domestic uses, additional wastewater, which will minimize present and futurc disposal of wastewater in a manner cost-effective for its Enc Users, thereby, reducing the need for additional water that otherwise must be delivered from MWD's aqueduct water supply system; WHEREAS, CMWD, acting as Lead Agency, shall comply with the provisions of the California Environmental Quality Act (CEQA) before MWD will be obligated to make any payments under this agreement; WHEREAS, the Vallecitos Water District (WD) owns a operates the Meadowlark Water Reclamation Facility (MWRF) ir compliance with the California Regional Water Quality Contrc Board's reclaimed water requirements; WHEREAS, CMWD has executed an agreement with WD fc the delivery of up to 2,240 acre-feet per year of tertiary treated effluent from MWRF for the project; -3 - 0 0 WHEREAS, the Leucadia County Water District (LCWD) owns and operates the Gafner Water Reclamation Plant (GWRP) i compliance with the California 'Regional Water Quality Control Board's reclaimed water requirements and plans to construct a 1.0 MGD tertiary facility; WHEREAS, CMWD has executed an agreement with LCWD for the delivery of a minimum of 394 acre-feet per year of tertiary treated effluent when available from LCWD for the project ; WHEREAS, all parties believe development of Actual Yield (defined below) will benefit the local community withii CMWD and the region served by MND; WHEREAS, CMWD is empowered under Section 71309 and following of the Water Code to enter into contracts necessar] to carry out its powers and purposes; WHEREAS, MWD desires to assist in increasing the distribution of Reclaimed Water that would not otherwise occur through the Project, by agreeing with CMWD to buy, at < purchase price established herein which may be adjusted from time to time, the Actual Yield of the Project and by selling said Actual Yield back to CMWD through SDCWA at rates to be set by MWD and SDCWA from time to time; WHEREAS, SDCWA desires to participate in and affirmatively support the Project by purchasing the Actual Yield of the Project from MWD and reselling said Actual Yield to CMWD; -4 - a a WHEREAS, CMWD believes the contribution of MWD towar the cost of the Project, in the form of the purchase of the Actual Yield by MWD, will make the operation of the Project cost-effective, and thus desires to commit to repurchase said Actual Yield from MWD through SDCWA at rates to be set by MWT: and SDCWA, respectively, from time to time; WHEREAS, the Project will produce Actual Yield to Mh which will correspondingly reduce demand of SDCWA for water supply from MWD; WHEREAS, the Project, when fully developed, is estimated as being capable of distributing up to 2,050 acre- feet per year of Reclaimed Water; NOW, THEREFORE, in consideration of the promises and covenants hereinafter set forth, the parties do agree as follows: Section 1: Definitions. The following words and terms, unless otherwise expressly defined in their context, shall be defined to mean 1.1: l1Actual Yield" shall mean the actual amount o Reclaimed Water which is delivered by CMWD from the Project in any given year and available for sale by CMWD to MWD and resale by MWD to SDCWA as a member agency. "Actual Yieldvr shall exclude any Reclaimed Water MWD reasonably determines will not reduce SDCWAls demand for supply of potable water from MWD. Further, IIActual Yield" shall exclude any Reclain -5- -9- Aeu sioq3aija jo pieoa slam ayq Ilq uoTqnqriquo3 661 ayq ui aseaiau? ainqnj v -qoo3-ame iad pg$ jo quauXed e aq ~~ey': UO~qnqriqUO3 661 ay& '667 ayq UT aqedr3rqied Y3rYM sq3aCoid 07 am Xq paqnqriquoa 'sjseq qooj-ame ;cad e uo 'qunoux TPr3UPUTJ qaU ayq UPaU TTPyS ~lUOrqnq~iq.UO3 ddqll z9.T 'q3aCoid s-yq Xq paysjuinj iaq~~ pauxyepa~ jo siasr aqeurrqTn ayq. jo yaea ueau ~~eys ,,iasn p~3~,, :GOT ( it 661 11 XaqJeuraJay I U1216Oid Sq3aCOXd Tea07 ayq JapUn SqaaCoid pup q3aCOid S?yq dC pa3npoid iaqe~ jo sse-p ayq zoj auxq oq aurq uoij sioqaaijc 30 spieoa iyayq. jo Xqrioyqne buyqqas-aqei Aieuorqai~s~p ay: oq quensind 'Xpnyq.3adsai 'vM3as pue am Xq pabzey3 ale y3qfl squnoue asoyq. ueau ~~eys ,,aqei iaqe~ pawye~3a~, :p*~ *sasn uoyqebrii? TeznqTn3rzbr pue asin03 j~ob 'qTaquaaib 'AeMaaij se y3ns sasodinc TPrDads paqpxr~: ioj aiqesn ST TeAoidde A~uabe AioqeTnba; pue spiepueqs AqTTenb iaqe~ 07 q3aCqns qnq 'uorqdunsuoc ueuny 203 aTqesn qou ST L~T~M abe~as uorj pauyq~a; iaqeM qqeqodqns UPaU IIeyS IIiaqPM PaureT3aX11 :E*T Il-vlI qjqryx3 UT paurjap ATieTnsrqied aiou pup 'ieaA iad iaqeb paUKjeT3aa 30 qaaJ-ai3E 050'2 203 pUPUap abelalle UP bUj7aaU 30 aTqede3 sa~q~~73ej uorqnqyiqs-cp jo bu-gs~suo~ 'am3 Xc padoTaAap pup paubrsap buraq IrI aSPyd q3aCOid UOTqeUPT3al JaqPM UrSPa PUr3U3,, ayq UEaU TTPyS llZ)3aCOidIl :Z'7: -y12)33 yqr~ payTduo3 qou spy am3 ~D~JM io3 q3acoic ayq jo squauoduo3 asoyq Xq paia~r~ap iojpue pampoid iaqw m 0 0 apply to this Agreement if CMWD demonstrates to the satisfaction of MWD's General Manager a need for the increasc in the LPP Contribution and guarantees production and reuse c a certain annual amount of reclaimed water. Primary factors in considering eligibility for any increase in the LPP contribution will be if the cost of producing the reclaimed water exceeds the applicable MWD noninterruptible rate and whether an increase is needed to achieve a guaranteed level c production. Section 2: Project Description. All of the principal elements of the Project are mol particularly described in the summary and map, attached heret as Exhibits rlA1l and clB,ll and incorporated herein by this reference. Section 3: Warranties. 3.1: CMWD, through agreements with VWD and LCWD warrants that it has a firm source of effluent water adequate to operate the Project; 3.2: CMWD warrants that it is able and has a right to sell such Actual Yield as it produces from the Project. 3.3: CMWD warrants thi3t it does not discriminate against employees or against any applicant for employment because of ethnic group identification, religion, age, sex, color, national origin, or physical or mental disability and further warrants that it requires all contractors and consultants performing work on the Project to comply with -7- e a all laws and regulations prohibiting discrimination against employees or against any applicant for employment because of ethnic group identification, religion, age, sex, color, national origin, or physical or mental disability. 3.4: CMWD warrants that it will comply with the provisions of CEQA prior to commencing construction of each component of the Project. the completed environmental documentation for each component of the Project, and shall demonstrate to the satisfaction of MWD's General Manager that the CEQA has been complied with before MWD will be obligated to make any payments under this agreement for Reclaimed Water produced and/or delivered by that component. Section 4: Construction Responsibilities. CMWD will furnish MWD a copy of CMWD shall be solely responsible for all design, environmental proceedings, right-of-way acquisitions, permits and construction of the Project and all modifications thereof. CMWD shall be responsible for all capital costs of the Project. Section 5: Ownership of Facilities. CMWD shall be the sole! and exclusive owner of all Project facilities, except for Project facilities which may be installed within the boundaries of End User's property. MWD and SDCWA shall have no ownership right, title, security interest or other interest in any Project facilities, nor any rights, duties or responsibilities for operation and -8- a 0 maintenance thereof. The sole :right and obligation of MWD shall be in the form of an entitlement to purchase the Actual Yield generated by the Project <and to sell the Actual Yield as set forth in Sections 7 and 8 hereof. The sole right and obligation of SDCWA shall be in the form of an entitlement to purchase actual yield from MWD and resell actual yield to CMWD as set forth in Sections 7 and 8 hereof. Section 6: Operatins Responsibilities. 6.1: CMWD shall be solely responsible for the operation and maintenance of all components of the Project, including, but not limited to, obtaining and providing Reclaimed Water as a supply for the Project, and for distribution and delivery of Reclaimed Water to all End Users. CMWD shall provide metering devices, to be owned, operated and maintained by CMWD, for the purpose of measurinc the quantity of Actual Yield delivered to each End user. 6.2: CMWD agrees to properly operate, maintain, replace as necessary, and inspect the facilities comprising the Project, regularly and in accordance with all applicable state and federal laws, rules, regulations, and guidelines for the term of this Agreement. 6.3: CMWD shall, at ail1 times during the term of this Agreement, use its best efforts to operate the Project facilities in accordance with generally accepted professiona standards and maintenance and operation principles, and in -- g - e 0 such manner as to provide service to existing and future End Users on a fair and equitable basis. 6.4: CMWD shall at all times during the term of thi Agreement provide sufficient qualified personnel to properly operate and maintain Project facilities. meet applicable certification requirements of the pertinent regulatory agencies. Such personnel shal 6.5: CMWD shall insure that all Reclaimed Water produced and delivered by the Project is used in compliance with all applicable federal, state and local statutes, ordinances, regulations and other requirements, and shall further insure that connections to the Reclaimed Water syster are properly designed and constructed. 6.6: CMWD shall make available for inspection to Ml and SDCWA upon reasonable advance notice, all records, books and other documents relating to the operation of the Project Section 7: MWD Purchase of Actual Yield. 7.1: MWD shall purchase the Actual Yield from CMWD provided that, unless agreed otherwise in writing, MWD shall not be obligated to purchase in excess of 2,050 acre-feet delivered by the Project in any one MWD fiscal year (July 1 June 30). 7.2: MWD's purchase price shall be the sum of MWD' reclaimed water rate plus the LPP Contribution determined in accordance with Section 1.4 and 1.6. 7.3: CMWD shall determine at the beginning of each month the quantity of reclaimed water billed to its customer -10- 0 0 during the preceding month and shall invoice MWD monthly for the Actual Yield. No minimu:m amount of Actual Yield is guaranteed. 7.4: MWD shall pay CMWD for invoiced Actual Yield within 45 days of receipt of CMWD's invoice. Payment shall be by means of a credit to CMWD on the next billing MWD makes to SDCWA. If payment is not made by MWD to SDCWA within said 45 days, it shall thereafter draw interest at a rate equivalent to the average interest MWD earns on its own invested funds during the time period payment is delayed beyond 45 days. 7.5: Upon issuance of the credit, the Actual Yield shall, solely for purposes of billing and accounting, be deemed sold to MWD. Sale of water to MWD and SDCWA shall not affect CMWD's obligations u.nder Section 11. Section 8: Resale of Actual Yield to SDCWA and CMWD. 8.1: Purchase by SDCWA. MWD agrees to resell t.he Actual Yield to SDCWA simultaneously with MWD's purchase of respective Actual Yielc from CMWD. MWD at MWD's reclaimed water rate determined in accordance with Sections 1.4. SDCWA agrees to purchase that Actual Yield from 8.2: Purchase by CMWD. SDCWA agrees in turn t:o resell the Actual Yield to CMWD simultaneously with its purchase of that Actual Yield from MWD pursuant to Section 8.1. CMWD agrees to purchase that Actual Yield from SDCWA at a rate equal to SDCWA's -11- 0 e reclaimed water rate determined in accordance with Section 1.4. 8.3: Pavment Process. Upon receiving the MWD billing, SDCWA shall include the full amount of each CMWD credit on its next billing to CMWD. On that same CMWD billing, SDCWA shall show that the Actual Yield has been resold to CMWD by debiting CMWD for SUC Actual Yield in accordance with the purchase price set forth in Sections 1.4 and 8.2. Such Actual Yield shall be deemed resold by SDCWA to CMWD as of the date of SDCWAls billing. 8.4: MWD's Oblisations. Nothing contained herejin shall be deemed to modify MWD obligations, if any, established by law or contract to supply water to SDCWA for domestic and municipal use within MWDIs service area. Section 9: Project Water Rates. 9.1: The Board of Directors of MWD shall set reclaimed water rates to be charged for the sale of the reclaimed water generated by th.is and similar projects. These rates may be changed from time to time by said Board. 9.2: The Board of Directors of SDCWA shall set reclaimed water rates to be charged for the sale of the reclaimed water purchased from IWD pursuant to this Agreement. by said Board. These rates may be changed from time to time 9.3: The rates set by CMWD for subpotable water service shall be set at its sole discretion. -12- e 0 Section 10: Term and Amendments. 10.1: The term of this Agreement shall be seven (7) years from the date CMWD notifies MWD that the Project has begun operations. 10.2: This Agreement may be amended at any time by the written mutual agreement of the parties. Section 11: Hold Harmless and Liability. CMWD agrees at its sole cost and expense to defend and hold MWD and SDCWA harmless from any claim and any and all liability, including but not limited to, liability due to water quality, which may arise out of CMWD's approval of, and subsequent construction and operation of the Project or out of the ownership of the Project, and will save and defenc MWD and SDCWA and their officers, agents, and employees free from any claims for injury, including death or damage to property, or injury (including death or damage) due to water quality arising out of the construction, operation, or ownership of the Project. Such indemnity shall include all loss related to any claim made, whether or not a court actio is filed, and shall include attorney fees, administrative ani overhead costs, engineering and consulting fees and all othe costs related to or arising out: of such claim of liability. Section 12: Notice. Any notice, payment or instrument required or permitted to be given hereunder shall be deemed received up0 personal delivery or 24 hours after deposit in any United -13- 0 States post office, first class postage prepaid and addressed to the party for whom intended, as follows: If to MWD: The Metropolitan Water District 1111 Sunset Boulevard Post Office Box 54153 Los Angeles, California 90054 Attention: General Manager of Southern California If to SDCWA: San Diego County Water Authority 3211 Fifth Avenue San Diego, California, 92103 Attention: General Manager If to CMWD: Carlsbad Municipal Water District 5950 El Camino Real Carlsbad, California 92008 Attention: General Manager Any party may change such address by notice given to each of the other parties as provided in this section. Section 13: Successors and Assiqns. This Agreement shall !inure to the benefit of and be binding upon the successors and assigns of the parties hereto. from the Parties. Section 14: Severability. No assignment shall be made without written agreeme The partial or total invalidity of one or more -14- 0 0 sections of this Agreement shall. not affect the validity of this Agreement. Section 15: Intesration. This Agreement comprises the entire integrated understanding between the parties concerning the Encina Basin Water Reclamation Project Phase I, and supersedes all prior negotiations, representations, or agreements. Section 16: Governins Law. The law governing this agreement shall be the laws c the State of California. /// /// /// /// /// /// /// /// /// /// /// /// /// /// /// -.15- 0 0 IN WITNESS WHEREOF, the parties hereto have executed this Agreement effective as of the date first hereinabove written. APPROVED AS TO FORM: THE METROPOLITAN WATER DIS OF SOUTHERN CALIFORNIA By: By: / ', - "J APPROVED AS TO FORM: SAN DIEGO COUNTY WATER AUTHORITY By : CARLSBAD MUNICIPAL WATER e DISTRICT By : LQ-k RON BALL, GENERAL COUNSEL B BWENCIN2 /&/& 7 2 * -:L6- 0 0 EXHIBIT A ENCINA BASIN WATER RECLAMATION PROJECT PHASE I PROGRAM Proiect Description Overview Phase I of the Encina Basin Water Reclamation Projei (Project) is a municipal wastewater reuse project sponsored : the San Diego County Water Auth.ority (SDCWA) and will be own1 and operated by the Carlsbad Municipal Water District (CMWD)* The project is expected to prod.uce about 2,050 acre-feet per year (AFY) of !'new water" for landscape, school, park, freeway, golf course and agricultural uses. The Project is located entirely within the CMWD's service area immediately south of Palomar Airport Road and west of El Camino Real. The City of Carlsbad has developed the Carlsbad Wati Reclamation Master Plan to increase the use of reclaimed watl within the City. City's first step in implementing the Master Plan. Construction of this Project will be the Source of Reclaimed Water The Meadowlark Water Reclamation Facility (MWRF) an( the Gafner Water Reclamation Plant (GWRP) will be the source: of supply for the Project. The MWRF has a capacity of 2.0 mc 0 e of tertiary treatment and meets all Title 22 requirements for the uses intended as part of this project. MWRF is owned and operated by the Vallecitos Water District (VWD) which is located generally east of the CMWD. The GWRP has a current capacity of 0.75 mgd of secondary treatment and will be upgraded to meet all Title 22 requirements. GWRP is owned and operated by the Leucadia County Water District (LCWD) which is located generally south of the CMWD. CMWD has executed a contract with VWD to purchase up to 2,240 AFY of reclaimed water from the MWRF for this project. via VWD's fail-safe pipeline. CMWD has also executed a separate agreement with LCWD for the delivery of a minium of 394 AFY of reclaimed water from the GWRP. This water will be delivered via an existing pipeline to a storage pond at the La Costa Golf Course (South Course). The water will be delivered to CMWD's pump station Distribution System The distribution system will consist of improvement to the existing Mahr Reservoir, construction of a pump station, conversion of two potable water reservoirs to reclaimed water reservoirs, construction of distribution system pipelines, and installation of potable water pipeline to replace pipelines that will be converted to reclaimed wat use. The improvements to Mahr Reservoir will include .- 2 - 0 e modifications to the VWD's existing effluent pump station, installation of a pressure screen and screening rejection pipeline, construction of a diversion structure, and installation of electrical and instrumentation equipment. Facilities necessary to serve the Aviara Development include a pump station, conversion of existing potable water reservoirs and pipelines to reclaimed water use, and replacement of sections of the potable water pipelines converted to reclaimed water use. The pump station will deliver reclaimed water from the fail-safe line at El Camino Real to the reclaimed water reservoirs via 5,300 feet of 12-inch diameter pipeline. Two storage reservoirs will be converted to reclaimed water use. Approximately 3,054 feet of 12 and 16-inch potable water- pipeline will be installed tc replace the pipeline converted to reclaimed water use. The facilities necessary to deliver reclaimed water to the flower growers and CalTrans include conversion of existing potable water pipelines to reclaimed water use, installation of a potable water pipeline to continue supplie to existing potable water users, and construction of pipelin to deliver reclaimed water to the project's proposed End Users. About 5,400 feet of existing potable water pipeline will be converted to reclaimed water use. This pipeline extends from the converted reservoirs to Palomar Airport Road. Approximately 1,200 feet of 4-inch and 1,500 feet of .- 3 - e 0 10-inch pipeline will be constructed to continue service to potable water users in the immediate area. approximately 6,195 feet of, 8 and 12-inch pipeline will be constructed to delivery Reclaimed Water to agricultural user: along College Boulevard and CalTrans at Interstate 5. In addition, Existing facilities wi.11 be used to deliver reclaim1 water to the La Costa Golf Course (North and South courses). End Users The five End Users served by the distribution syste will use about 2,050 acre-feet of water per year. Table 1 i a list of the End Users and their annual reclaimed water demand. Table 1 End Users and Amount of Reclaimed Water to be Delivered End User Amount Aviara Development 677 AFY CalTrans 78 AFY La Costa Golf Course' 637 AFY Carlsbad Ranch 187 AFY Growers 470 AFY ' Historically, the La Costa Golf Course received minor amounts of Reclaimed Water for irrigation. .- 4 - 0 0 Environmental Impact The Planning Commission of the City of Carlsbad has approved a Mitigated Negative Declaration (MND) for the Project based on the Commission's determination of the Project's consistency with the City's General Plan. The MND was approved by the Carlsbad City Council as Resolution No. 2925 on April 4, 1990. As a condition of mitigation a detailed environmental review of the proposed facilities SUC as underground storage reservoj-rs, pump stations, and pipelines is required. This detailed review is currently underway and is being conducted in stages as the project's design is completed. An Environmental Impact Report was prepared for the Aviara Development which included the pump station at El Camino Real. Also a Negative Declaration for the 12'' force main has been issued by the City of Carlsbad. .- 5 -